2/5/15 was down -$1.34. That is the biggest one-day drop we have seen this year. The model projects that the component on the 2/5/15 kill will drop between -0.80 and -1.10. Packers are getting serious about getting their cost of product down in the face of declining cut out prices.

Producers seem to have plenty of hogs to run to market and they seem to be willing sellers at these lower prices. But what alternative is there? When hogs are finished, they have to get to the packing plant!

There is a good chance that the bump up in prices today is at least partially driven by technical/emotional factors. Maybe not all contracts but probably for the GGGs.

Best wishes,

dhm